BYOT.L Regulatory News (BYOT)

11 Dec 2006 07:00

Byotrol PLC11 December 2006 Byotrol plc 11 December 2006 Byotrol plc (the 'Company') Byotrol TM is a patented anti microbial technology which has been shown to beboth versatile and highly effective. Byotrol TM has been extensively tested ina number of applications and has been shown to safely control or eradicate thethreats caused by micro-organisms, such as MRSA, e-coli and c-difficile. ByotrolTM is now being actively marketed in both Europe and North America. Unaudited interim results for the six months ending 30 September 2006 HIGHLIGHTS • EPA registration of Byotrol Polysphere for use in a large number of target markets in the USA • CE mark registration in the EU for the medical use of Byotrol in hospitals and clinics • Successful completion of a 6 month NHS study against MRSA at the Glasgow Royal Infirmary • Granted a Chinese patent • Successfully raised £5m gross (£4.6m net) of capital through a share placing • Signed a major licensing and distribution agreement with Synergy Healthcare plc. Enquiries Byotrol plc 0161 277 9518 Stephen Falder Deputy Chairman 07767 404629 David McRobbie Chief Executive 07739 549226 Richard Bell Finance Director 07825 204110 Charles Stanley Securities 020 7149 6457 Philip Davies / Anthony Noakes McCann Erickson PR 01625 822540Jim Rothnie CHAIRMAN'S STATEMENT The six month period has seen continuing satisfactory progress by the Companythat was either in line with or in advance of our planned development forByotrol. It is the Board's strategy to make Byotrol a globally trusted brand inthe fields of microbial control. To this end we are highly focussed on ensuringthat our technology is appropriately tested, evaluated, accredited andcertificated in our target markets throughout the world. Some major achievements were recorded during the period that will all help toensure that Byotrol gains the rapid and high level of acceptance and use in theCompany's target markets of Healthcare, Food Processing and Industrial &Technical. At the same time steady progress was made with the company's salesplan. Highlights of the period include: • EPA registration of Byotrol Polysphere for use in a large number of target markets in the USA • CE mark registration in the EU for the medical use of Byotrol in hospitals and clinics • Successful completion of a 6 month NHS study against MRSA at Glasgow Royal Infirmary • Grant of a Chinese patent Against the background of substantial regulatory and market progress during theperiod, the Company has capitalised on such progress with significant actionsannounced since the end of period: • Successfully raised a further £5m gross (£4.6m net) of capital through a share placing • Signed a major licensing and distribution agreement with Synergy Healthcare plc. • Granted a Singapore patent Financial results for the period During the period, as anticipated, the company continued to use the resourcesprovided by the float in July 2005 and recorded a loss of £910,820. Sales forthe period were £116,814 compared with £47,409 for the nine months ended 30September 2005. The balance sheet shows a net worth of £154,802 at the periodend. The end of period balance sheet does not reflect the recent equityfundraising completed in November 2006. Healthcare During the period two events of major significance occurred in the Healthcaremarket. Firstly we completed a highly successful trial in an NHS hospital.Secondly we gained an ISO approval of our systems that gave the company thecapability of CE marking its medical disinfectant materials. The NHS trial was supervised by Professor Curtis Gemmell, a highly respectedexpert in the field of Methicillin Resistant Staphylococcus Aureus ("MRSA")infection. He subsequently presented a paper on the trial at an internationalinfection control conference which showed reductions of over 50% in MRSA in ahospital ward when compared with a traditional disinfection regime. Theseresults were more remarkable when it is taken into account that only a smallfraction of the wards surfaces were treated with Byotrol and only once per day.The Board is very encouraged by this success which, in combination with the safeand easy use of Byotrol in a working ward environment with no need for capitaloutlay or special training, puts the company in a potentially advantageousposition. Subsequent to the period end a significant licensing deal was signed with amajor UK healthcare group Synergy Healthcare plc. This will quickly put Byotroltechnology within reach of key customers in the NHS and clinical fields and isfully consistent with our strategy for Byotrol as an active ingredient brand. Itis our intention to partner with major players in our target markets to enableus to position Byotrol in the market place more quickly than would happen if wewere to develop our own sales force. Food processing Food production is an area of significant opportunity for Byotrol where thetechnology's combination of efficacy, safety, ease of use and durability provideprospective customers with attractive benefits. Several high profile and well publicised incidents and "food scares" havehighlighted further to an already alert market the risks of contamination andthe benefits of high performance sanitisation products. The Company has been planning and undertaking numerous trials and initialinstallations at key prospects within the food industry in both the UK and theUSA. EPA approval has made it possible to commence early stage supply for trials to anumber of important food processors in the USA and the Board is greatlyencouraged by the initial outcomes. Technical and industrial markets Control of microbes is not solely concerned with health, safety and healthcareissues. There are many areas, where it is necessary to control microbes toprevent damage, deterioration and spoilage, which need a technology such asByotrol. The strategy of the company in these areas is to engage with partnersin these fields who are expert in or burdened by microbial problems. These rangefrom the safe maintenance of sports equipment where progress continues with ourCaddy Care range for golfers and in the USA where Contec Inc continue to servethe niche of gymnasium equipment to the sanitization to municipal control ofalgae and slime on signage and street furniture. Ongoing negotiations with several large global companies to provide Byotrolproducts to industry and the public, whilst at an initial stage, are progressingsatisfactorily. The Board is very mindful of the need to forge the best possiblelong term partnerships in these fields as opposed to accepting the firstavailable opportunities. Other products The UK's largest pet retailer Pets At Home launched a range of dog groomingproducts in July that was well received by their customers and is available atapproximately 160 stores throughout the UK. This was a result of cooperationbetween Byotrol and Byofresh Limited who developed and tested this particularfamily of products. The expanding range of pet care materials incorporatingByotrol was exhibited at the GLEE exhibition in Birmingham, and there was astrong level of interest both nationally and internationally. At the sameexhibition, the "Stay Clean" brand was launched by Viksol, for both garden andhome use and received an excellent reception and substantial enquiries. Regulatory and intellectual property In July the company achieved EPA registration in the USA, and CE mark approvalin Europe. Byotrol's technology uses biocides that are all well placed to befully compliant with pending EU regulations (the Biocidal Products Directive"BPD"). The regulatory climate is undergoing significant change which has anumber of advantages to the Company as it forces a review of products byvirtually all significant users in the European Union. The company received notice that its technology had received a granted patent inChina, an important market for Byotrol but in particular for potential futurepartners of the Company. The Company has filed a patent for the use of Byotrol as a tissue preservativewhere it is a safe alternative to formaldehyde for several niche uses andrecently began sales in trial volumes. Staffing During the period the management and staff have worked tirelessly and diligentlyto achieve our milestones and goals. New people have joined and quickly becomevalued members of the team. I would like to express my personal thanks to all ofthem for the hard work and dedication they have shown. Current trading and outlook The Board has been very encouraged by the events of the last six months. Anumber of significant opportunities and related markets have become accessibleto the Company either sooner or in a more significant manner than had beenforecast. This combination of beneficial events was the catalyst for thesuccessful fundraising in November 2006 and the signing of a significantlicensing deal with Synergy for certain healthcare markets in the same month. It is the policy of the Board to remain cautious and conservative in its plansfor revenues, but also to aggressively pursue early penetration of all targetedmarkets through strong partnerships, excellent scientific data, and strong brandand company values. The Board is confident that shareholders will see a continued strengthening ofthe Company, its business and brand. Wesley Devoto OBEChairman, 11 December 2006 Byotrol PLCUNAUDITED CONSOLIDATED PROFIT AND LOSS ACCOUNTfor the period ended 30 September 2006 6 Mths 9 Mths 15 Mths 30-Sep-06 30-Sep-05 31-Mar-06 £ £ £ Group turnover 116,814 47,409 90,014Cost of Sales (66,798) (26,132) (47,902) _________ ________ _________ Gross Profit 50,016 21,277 42,112 Administrative expenses (978,531) (498,763) (1,424,793) _________ ________ _________ Operating loss (928,515) (477,486) (1,382,681) Net interest receivable 17,558 14,011 50,215 _________ ________ _________ Loss on ordinary activities before taxation (910,957) (463,475) (1,332,466) Taxation - - - _________ ________ _________ Loss on ordinary activities after taxation (910,957) (463,475) (1,332,466) Minority interest 137 667 1,490 _________ ________ _________ Loss on ordinary activities after minority interest (910,820) (462,808) (1,330,976) _________ ________ _________ Retained loss for the period (910,820) (462,808) (1,330,976) _________ ________ _________ Loss per shareBasic per share (pence) (2.61) (3.05) (5.76)Diluted per share (pence) (2.61) (3.05) (5.76) _________ ________ _________ The loss for the period arises from the group's continuing operations Byotrol PLCUNAUDITED CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSESfor the period ended 30 September 2006 6 Mths 9 Mths 15 Mths 30-Sep-06 30-Sep-05 31-Mar-06 £ £ £ Loss for the financial period (910,820) (462,808) (1,330,976)Currency translation differences on foreign currency net investments 21,923 (37,822) (42,184) _________ ________ _________Total recognised gains and losses relating to the period (888,897) (500,630) (1,373,160) _________ ________ _________ Byotrol PLCUNAUDITED CONSOLIDATED BALANCE SHEETas at 30 September 2006 30 September 30 September 31 March 2006 2005 2006 £ £ £ FIXED ASSETSIntangible assets 9,333 9,833 9,583Tangible assets 59,017 45,671 50,645Investments 5,000 5,425 5,000 _________ ________ _________ 73,350 60,929 65,228 _________ ________ _________ CURRENT ASSETSStock 40,194 48,256 21,180Debtors 227,371 119,901 118,177Cash at bank and in hand 256,825 2,187,541 1,213,053 _________ ________ _________ 524,390 2,355,698 1,352,410 CREDITORS: Amounts falling due within one year (442,938) (502,310) (373,801) _________ ________ _________ NET CURRENT ASSETS 81,452 1,853,388 978,609 _________ ________ _________ TOTAL ASSETS LESS CURRENT LIABILITIES 154,802 1,914,317 1,043,837 CREDITORS: Amounts falling due after one year - - - _________ ________ _________ 154,802 1,914,317 1,043,837 _________ ________ _________ CAPITAL AND RESERVESShare capital 87,182 87,182 87,182Share premium account 2,945,529 2,945,529 2,945,529Merger reserve 1,064,712 1,064,712 1,064,712Minority interest 1,246 (667) 1,383Profit and loss account (3,943,867) (2,182,439) (3,054,969) _________ ________ _________ EQUITY SHAREHOLDERS' FUNDS 154,802 1,914,317 1,043,837 _________ ________ _________ Byotrol PLCUNAUDITED CONSOLIDATED CASH FLOW STATEMENTfor the period ended 30 September 2006 30 September 30 September 31 March 2006 2005 2006 £ £ £ Net cash outflow from operating activities (914,842) (334,435) (1,283,245)Returns on investments and servicing of financeInterest received 17,743 17,566 53,198Interest paid (185) (3,555) (2,983) __________________________________________ Net cash inflow from returns on investments and servicing of finance 17,558 14,011 50,215 Taxation - - - Capital expenditurePurchase of tangible fixed assets (19,944) (45,509) (54,691) __________________________________________ Net cash outflow for capital expenditure (19,944) (45,509) (54,691) __________________________________________ __________________________________________ Net cash outflow before use of liquid resources andfinancing (917,228) (365,933) (1,287,721) __________________________________________ FinancingIssue of ordinary share capital - 3,119,360 3,119,360Expenses of share issue - (533,875) (533,875)Repayment of other loans - (15,451) (15,451)Increase in directors' loans - 24,537 24,537 __________________________________________ Net cash inflow from financing - 2,594,571 2,594,571 __________________________________________ __________________________________________ (Decrease)/increase in cash (917,228) 2,228,638 1,306,850 __________________________________________ 1 This interim statement for the period to 30 September 2006 is unaudited and was approved by the Directors on 11 December 2006. The information set out does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. 2 Turnover Turnover and loss before taxation were all derived from the Group's principal activities and arose principally in the following geographical markets: 6 Mths 9 Mths 15 Mths 30-Sep-06 30-Sep-05 31-Mar-06 £ £ £ UK 43,700 19,012 34,906 North America 13,675 28,397 39,026 Rest of World 59,439 - 16,082 __________________________________________ 116,814 47,409 90,014 __________________________________________ The segmental analysis of turnover is: 6 Mths 9 Mths 15 Mths 30-Sep-06 30-Sep-05 31-Mar-06 £ £ £ Health 53,096 - 934 Industrial 51,613 47,409 76,940 Food 12,105 - 12,140 __________________________________________ 116,814 47,409 90,014 __________________________________________ 3 The interim financial information contained in this statement does not constitute statutory accounts as defined in section 240 of the Companies Act 1985.The principal accounting policies of the group are those which will be adopted in the financial statements for the year ending 31 March 2007, including the adoption of Financial Reporting Standard No 20 ('FRS20 - share based payments'). The accounts for the fifteen months ended 31 March 2006, upon which the auditors issued an unqualified opinion and which did not contain a statement under s237(2) or (3) Companies Act 1985, have been delivered to the Registrar of Companies. 4 Loss per ordinary share The loss per ordinary share is based on the losses for the period of £910,820 (nine months ended 30 September 2005: £462,808 loss; fifteen months ended 31 March 2006 £1,330,976 loss) and the weighted average number of ordinary shares in issue during the period of 34,872,849 (nine months ended 30 September 2005: 15,206,662; fifteen months ended 31 March 2006: 23,090,464). The loss for the period and the weighted average number of ordinary shares for calculating the diluted earnings per share for the six months ended 30 September 2006 and for the comparative periods are identical to those used for the basic earnings per share. This is because the outstanding share options would have the effect of reducing the loss per ordinary share and would therefore not be dilutive under the terms of Financial Reporting Standard No 22. 5 Taxation No liability to UK corporation or overseas income taxes arises for the period due to losses incurred. The directors have assessed the position in relation to deferred tax and concluded that no provision or asset should be created at this stage in respect of deferred tax in view of the timescale and uncertainty of the recovery of tax losses. This position will be reviewed again at 31 March 2007. 6 Cashflows Reconciliation of Operating Loss to Net Cash Outflow from Operating Activities 6 Mths 9 Mths 15 Mths 30-Sep-06 30-Sep-05 31-Mar-06 £ £ £ Operating loss (928,515) (477,486) (1,382,681) Depreciation 11,572 1,822 6,217 Amortisation of intangible assets 250 167 417 (Increase)/decrease in stock (19,014) (12,738) 14,338 (Increase)/decrease in debtors (109,194) (104,148) (102,424) Increase/(decrease) in creditors 108,137 296,008 223,072 Exchange gain or loss 21,922 (38,060) (42,184) __________________________________________ Net cash outflow from operating activities (914,842) (334,435) (1,283,245) __________________________________________ Reconciliation of net cash flow to movement in Net Debt 6 Mths 9 Mths 15 Mths 30-Sep-06 30-Sep-05 31-Mar-06 £ £ £ Increase in cash in the period (917,228) 2,228,638 1,306,850 Cash inflow from increase in debt - (9,086) (9,086) __________________________________________ Change in net debt resulting from cash flows (917,228) 2,219,552 1,297,764 Loans converted into shares - 488,811 488,811 __________________________________________ Movement in net cash/(debt) in the period (917,228) 2,708,363 1,786.575 Net cash/(debt) at start of period 1,113,491 (673,084) (673,084) __________________________________________ Net cash at end of period 196,263 2,035,279 1,113,491 __________________________________________ At 1 Apr Cash flow Non cash At 30 Sep 2006 £ movement 2006 £ £ £ Analysis of net debt Net cash: Cash at bank and in hand 1,213,053 (956,228) - 256,825 Overdraft - - - - _______________________________________________________________________ 1,213,053 (956,228) - 256,825 Debts falling due within 1 year (99,562) 39,000 - (60,562) _______________________________________________________________________ Net cash 1,113,491 (917,228) - 196,263 _______________________________________________________________________ 7. Post Balance Sheet event The Company raised £5m, £4.6m net of expenses, by a share placing in November 2006 of 8,340,000 ordinary shares at 60p each. 8. The interim report was issued to the Stock Exchange and the press on 11 December 2006 and will be posted to shareholders. Further copies of the interim report are available at the Company's Registered Office and a copy will be posted on the Company's website. Introduction We have been instructed by the company to review the financial information forthe six months ended 30 September 2006, which comprises the Consolidated Profitand Loss Account, Consolidated Statement of Total Recognised Gains and Losses,Consolidated Balance Sheet, Consolidated Cash Flow Statement and the relatednotes, and we have read the other information in the interim statement andconsidered whether it contains any apparent misstatements or materialinconsistencies with the financial information. This report, including the conclusion, has been prepared for and only for thecompany for the purpose of their interim statement and for no other purpose. Wedo not, therefore, in producing this report, accept or assume responsibility forany other purpose or to any other person to whom this report is shown or intowhose hands it may come save where expressly agreed by our prior consent inwriting. Directors' responsibilities The Interim Statement, including the financial information contained therein, isthe responsibility of, and has been approved by the directors. The directors areresponsible for preparing the Interim Statement in accordance with the AIM Ruleswhich require that the accounting policies and presentation applied to theinterim figures must be consistent with those that will be adopted in thecompany's annual accounts. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4issued by the Auditing Practices Board as if that Bulletin applied. A reviewconsists principally of making enquiries of group management and applyinganalytical procedures to the financial information and underlying financial dataand based thereon assessing whether the accounting policies and presentationhave been consistently applied unless otherwise disclosed. A review excludesaudit procedures such as tests of controls and verification of assets,liabilities and transactions. It is substantially less in scope than an auditperformed in accordance with Auditing Standards and therefore provides a lowerlevel of assurance than an audit. Accordingly we do not express an audit opinionon the financial information. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 30 September 2006. BAKER TILLYChartered AccountantsBrazennose HouseLincoln SquareManchesterM2 5BL 11 December 2006 This information is provided by RNS The company news service from the London Stock Exchange